Backyard granny flats are facing a new future as state governments pull back on regulations around secondary dwellings to ease Australia’s housing shortage.
With a naming history that stems from the fact they were originally built for and could only be legally used by the homeowner’s family members, granny flats have been given new government laws that will allow anyone to rent them.
The move is aimed at adding more stock to the housing market and giving tenants a higher chance of finding a property.
The new rules will also enable struggling homeowners to pocket much-needed cash after 13 cash rate rises in 2022 and 2023, while house values may also increase.
In some areas, existing or new granny flats may also be able to escape lengthy council approval processes.
In other states, these new rules are old hat, having been in play in New South Wales, Northern Territory and ACT since 2009, 2014 and 2013 respectively.
In New South Wales, Council approval is not required to plan or build a secondary dwelling of up to 60 sqm. Planning approval is needed in the Northern Territory but homeowners are safe from building approval applications.
In the ACT, homeowners can rent secondary residences of up to 90 sqm to anyone, and new residences need building approval. Sites of 800 sqm or more can now also be split into dual-occupancy housing, with the second property of 120 sqm or less having a separate title.
Queensland’s new granny flat laws, allowing anyone to rent them, were announced in September 2022.
Existing secondary dwellings of up to 80 sqm, that did not need planning approval or have occupancy conditions, can be rented out immediately.
New dwellings will require building approvals and possibly planning approvals, depending on local council regulations.
Tasmania has no statewide laws on granny flats but these dwellings are open to all renters. However, homeowners are advised to check with local councils regarding approvals.
Victoria, South Australia and Western Australia were the last states to bring their granny flat rules into line with the rest of the country, following announcements in late 2023.
NOTE: The information in this article is general in nature and provided as a market overview only. Consult your local council for advice specific to your personal circumstances.